Liquidity Services reported higher profit in its fiscal Q1 as activity on its online marketplace increased, even as revenue edged down.
The Bethesda, Maryland-based company said gross merchandise volume (GMV) rose 3% to $398.0 million for the quarter ended Dec. 31. GMV refers to the total value of goods sold through its platform. Meanwhile, Liquidity Services revenue declined 1% to $121.2 million in Q1.
Net income increased to $7.5 million, or $0.23 per share, up from $5.8 million, or $0.18 per share, a year earlier.
The company said stronger participation from buyers and sellers, along with improvements to its technology platform, helped lift profitability.
“We delivered a strong start to fiscal 2026 with profitability ahead of expectations, reflecting the strong buyer and seller participation within our marketplace platform,” CEO Bill Angrick said in a statement.
How Liquidity Services grew revenue in Q1
Liquidity Services operates online marketplaces that connect businesses and government agencies with buyers for surplus inventory, returned goods and used equipment. The company said it is increasing its use of artificial intelligence (AI) and automation to improve pricing, decision-making and customer experience.
Marketplace activity continued to grow. Registered buyers rose 9% to about 6.2 million. The number of active auction participants increased 2% to 983,000, and completed transactions rose 4% to about 264,000.
Results varied across business segments. GovDeals, which serves government sellers, posted increases in both sales volume and revenue. The company’s retail supply chain group saw revenue decline as inventory purchases slowed, though profitability improved as more buyers participated across multiple sales channels. The capital assets group reported lower sales volume compared with a strong prior-year period that included large projects.
The company also expanded its digital leadership team, naming Cullen Rowley as vice president of ecommerce. He will focus on improving marketplace performance and strengthening buyer and seller engagement across the company’s online platforms.
Liquidity Services expects marketplace activity to remain steady in the current quarter, supported by continued buyer demand and a mix of consignment-based sales.
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